RIEDEL RESOURCES LIMITED — Capital/Financing Update 2011

Feb 28, 2011

ASX ANNOUNCEMENT 1 March 2011

Acquisition of Minority Interests at Marymia Project

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COMPANY DIRECTORS Mr Ian Tchacos Non-Executive Chairman

Mr Bruce Franzen Executive Director

Mr Jeffrey Moore Non-Executive Director

Mr Andrew Childs Non-Executive Director

The Directors of Riedel Resources Limited “Riedel” are pleased to advise that it has acquired through its wholly owned subsidiary AuDAX Minerals Pty Ltd ”ADXM” , the minority interests in the Marymia Project tenements EL’s 52/2394 and 52/2395.

Mr Franzen Executive Director of Riedel said that “This transaction effectively unencumbers these tenements yielding us a one hundred (100) per cent interest. We now have the currency to consider a number of exploration and development opportunities in the Doolgunna/Marymia Region.”

Background

Pursuant to a Heads of Agreement dated 12 April 2010 between ADX Energy and Galtrad Pty Ltd “Galtrad” , in relation to tenements EL52/2394 and EL52/2395 (Marymia Project Tenements) (as assigned to ADXM on 20 May 2010), Galtrad is entitled to a ten (10) per cent free carried interest in relation to the portions of former EL52/592 and EL52/594 that are contained within the tenements. The free carry continues until a decision to mine, whereby Galtrad will contribute in accordance with its equity interest or dilute pro rata. Galtrad agrees to dilute its free carried interest to a five (5) per cent interest in relation to nickel and associated minerals should ADXM negotiate a joint venture with a third party for those commodities.

Mr Wolfgang Zimmer Non-Executive Director

COMPANY SECRETARY Mr Bruce Franzen

CONTACT DETAILS Principal & Registered Office Suite 6, Level 2 11 Ventnor Avenue West Perth WA 6005 Australia

Postal Address PO Box 913, West Perth WA 6872 Website www.riedelresources.com.au

Email admin@riedelresources.com.au

Phone +61 8 9226 0866

Facsimile +61 8 9226 5333 ABN: 143 042 022 ASX CODE: RIE

Sale and Purchase

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In consideration of the cash payment by ADXM to Galtrad (or its nominee), Galtrad agrees to sell and ADXM agrees to purchase and take assignment of all of Galtrad’s legal and beneficial right, title and interest in and to the Marymia tenements, free from encumbrances.

Upon settlement of the transaction, ADXM will hold one hundred (100) per cent interest in relation to tenements EL52/2394 and EL52/2395 known as the Marymia Project.

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The Marymia Project

The Marymia copper-gold project is located approximately 180km north-east of Meekatharra in Western Australia and lies within the Marymia Dome. It comprises an Archaean basement high, which hosts a complexly folded and faulted greenstone sequence which forms part of the major Proterozoic Capricorn Orogenic Belt. The Marymia Project Area is comprised of two major contiguous ELs, which overlie most of the Baumgarten Greenstone Belt ( See Figure 1 ) . EL52/2394 and EL52/2395 occupy a total area of approximately 431.37 km2. The project area is situated on the Ned’s Creek and Marymia pastoral leases and is approximately 50km north east from Sandfire Resources Ltd’s recently discovered DeGrussa copper-gold deposit, with tenements also directly overlying the highly prospective Jenkin fault.

Existing exploration targets include structurally controlled gold and copper-gold, magmatic nickelsulphide and base metals mineralisation. Previous exploration has consisted of acquisition, processing and interpretation of remote sensing data, geological mapping, soil, lag and rock chip sampling, RAB and limited RC and diamond drilling. A high resolution airborne magnetic and radiometric survey was completed in October 2004 by AuDAX Resources Ltd. Magnetic, radiometric and Advanced Spaceborne Thermal Emission and Reflection Radiometer (Aster) satellite data was processed, imaged and interpreted. Interpretation of the magnetic data defined a number of gold and nickel targets. A number of geochemical targets generated previously require follow-up exploration.

We are extremely fortunate to hold 431km2 of tenements overlying a major structural feature in the Jenkin fault in arguably Australia’s most exciting major emerging multi commodity province, Mr Franzen said. These tenements have been overlooked by investors in recent years due to the fact that these assets were shelved by the former owners (ADX Energy Limited) ambitions to pursue oil & gas exploration. This is a great opportunity for the Company to explore in such a prospective area that has seen little exploration in more than a decade.

“Our exploration program at Marymia is to conduct airborne geophysical surveys, ground geochemical work and electromagnetic surveys with a view to be drilling as soon as possible. We plan to leverage from a rapidly evolving regional geological understanding of the area,” Mr. Franzen said.

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Figure 1: Marymia Regional Geology with Project Area Tenements

For further information please contact:

Bruce Franzen Executive Director Riedel Resources Limited Tel: 61 8 9226 0866 Email: bruce.franzen@riedelresources.com.au

About Riedel Resources Limited

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Riedel Resources Limited is an Australian Based exploration Company established to explore for and develop gold and base metals mineralisation in Western Australia. The Company was incorporated on 9 April 2010 as a public company for the purpose of acquiring a portfolio of highly prospective exploration projects located in Western Australia from ADX Energy Limited (formerly AuDAX Resources Limited).